Sahm Adrangi is the Chief Investment Officer and also the founder of the Kerrisdale Capital Management. He found the firm in 2009. During the launch of the firm, he began with only $1million in investment and currently, the company manages over $150. According to the Reuters, the company raised about $100 million from its investors and placed a bet on a single stock.
The inception and efficacy of the Hedge Fund
The Australian hedge fund Bronte Capital led by John Hempton made profits by uncovering corporate frauds that operated illegally on the stock market. Adrangi admired and borrowed John Hempton’s idea and formed hedge fund. He developed the interest in the Chinese firms that were un-vetted and were operating illegally in North America. He knew they were scams and he figured out that exposing them was the only way of making money out of those scams. He kept himself anonymous, and exposed how these Chinese firms were cooking their financial documents. He discovered that the firms had many discrepancies in their financial books and that was an indicator of their downfall. Kerrisdale made a kill out of this by putting 20% of its capital on a bet that the firms were collapsing.
Truly to their aspiration, the Chinese firms collapsed, and the Kerrisdale made huge profits out of that. Putting in mind the backlash he may receive after the expose, he exposed these frauds on an anonymous website. Adrangi dropped his anonymity and began publishing under the Kerrisdale Capital after other activist investors like Hempton and Carson Block disclosed the Chinese frauds publicly. The Chinese firms he exposed includes; China-Biotics, China Marine Foods, Education Alliance and China Education Corp.
The hedge fund by the Kerrisdale Company also focuses also on investigating the collapsing energy companies as well as mortgage-backed securities. Shane Wilson, an analyst at Kerrisdale together with Adrangi are working on a website, video and a report with a view of convincing others on their theory for the upcoming campaigns. They intended to unveil the company they are working on in mid-May. They have begun investing in the stock to increase the capital required to start up the company.
The Kerrisdale, a firm that is worth a proximately $500 million is known for betting against companies and publishing the matter. Its recent activity includes the Satellite Company Globalstar, and the drug makers sage Therapeutics and Zafgen.
Learn More : https://www.hvst.com/user/sahm-adrangi